Switzerland Inc. Fends Off Activist Cevian With Insurance Merger

When Cevian Capital boosted its stake in Swiss insurer Baloise Holding AG last year, insurance firms across Europe got ready for the activist investor to go straight for its usual playbook.

Companies including Axa SA and Allianz SE began to study whether Cevian’s engagement could put the Basel-based company, or some of its divisions, into play as takeover targets.

Cevian has a track record of triggering often dramatic strategic change, at times even breaking up longstanding businesses. At Baloise, where it had a stake of about 9%, it pushed management to focus on its core Swiss business and sell other ...